BW LPG (BWLP) announced their Q1 2026 results earlier this week. Some unusual event last week - the company announced a fleet expansion event, a few days before their earnings release (usually, that’s a no-no)
Regarding results, some confusing stats in an earnings release. Will have to sort thru the item in the transcript.
- TCE (spot) daily $58,300
- Product Services net profit $98M
- 100% NOPAT shipping rev + portion of last year’s Product Services gain compose the Q1 2026 div payout
- Div payout 67c/sh
- Q2 2026-to-date $81K daily (85% done)
Have to peruse the transcript. But, from the higher level details, company is executing well
3 Likes
IMHO, from a shipping segment color perspective. BWLP mgmt is to LPG shipping who FRO is to crude oil shipping. Each team really understand their respective sectors, ad usually answer more industry specific questions than their peer tanker mgmt teams.
Additional items addressed in the transcript
- Even with the increased TC in Q2, the $81,000 avg for Q2 2026 includes the TC coverage. Mgmt clarified this point multiple times. I guess, I was not the only one confused by the data provided in the earlier slides.
- The % TC does tail out in 2027 to the 30% range. But, the company has secured a 3-year TC, and a 5-year TC. Plus, the BW LPG (India) subsidiary has secured a 1-year $60K daily charter. BWLP CEO reiterated, the company has a base level TC (IIRC, it was in the $40K’s. So, even though only a year, $60K is a very nice rate.
- BWLP does still have a vessel stuck in the MEG region. It already has a cargo onboard. Can’t say for sure whether this was the previously dry docked vessel. But, in either case, BWLP does not have a dry docked vessel in the MEG region.
- While BWLP does have a share buyback program in place, the company would not be thinking of using the program at these levels.
https://seekingalpha.com/article/4910971-bw-lpg-limited-bwlp-q1-2026-earnings-call-transcript
1 Like